Norwegian salmon by-products processor Hofseth BioCare reported a wider first-quarter EBITDA loss after a maintenance campaign reduced production volumes, although higher prices for its bioactive ingredients helped lift margins.
EBITDA loss widened to NOK 23.2 million (€2.0 million) in the first quarter of 2026 from NOK 19.9 million (€1.8 million) a year earlier. Total operating revenue fell to NOK 49.5 million (€4.4 million) from NOK 60.9 million (€5.4 million).
The company processed 1,947 tonnes of raw material during the quarter, down from 3,253 tonnes in the same period last year, following planned maintenance at its Midsund facility.
Gross margin improved to 43.5% from 39.1%, reflecting a greater focus on bioactive ingredients. Excluding its PetGo commodity product range, the company’s portfolio grew 5.3% year on year.
Hofseth BioCare said contracts agreed during the second quarter include price increases of more than 100% year on year for its ProGo bioactive peptides, while the average selling price of its OmeGo full-spectrum salmon oil has also more than doubled.
Despite production volumes expected to remain around 40% below the prior-year period in the second quarter, the company said revenue should be broadly in line with the same quarter of 2025.
Loan breach
The parent company breached its loan covenants at the end of the quarter, with its Covenant Equity Ratio falling to 19.1%. Cash and cash equivalents declined to NOK 49.1 million (€4.3 million) from NOK 71.9 million (€6.3 million) at the end of the first quarter of 2025.
On June 28, the board approved the issue of 111.2 million new shares at NOK 1.30 (€0.11) each, raising gross proceeds of approximately NOK 144.5 million (€12.7 million). Around NOK 66.5 million (€5.9 million) of the issue will be settled through the conversion of receivables.
The second tranche of the capital raising is subject to approval at an extraordinary general meeting expected around July 30. The company said shareholders representing more than two-thirds of the voting rights have committed to support the proposal.
Hofseth BioCare also established a new subsidiary, HBC Cosmetics, at the start of the second quarter to develop a salmon-derived PDRN cosmetic ingredient, with commercial launch targeted for 2027.
The company said it expects to return to full production by the end of the third quarter, supporting its goal of achieving positive EBITDA.